Arbeitspapier
The enforcement of mandatory disclosure rules
This paper examines the incentives of a firm to invest in information about the quality of its product and to disclose its findings. If the firm holds back information, it might be detected and fined. We show that optimal monitoring is determined by a trade-off. Stricter enforcement reduces the incentives for selective reporting but crowds out information search. Our model implies that (i) the probability of detection and the fine might be complements; (ii) the optimal monitoring policy does not necessarily eliminate selective reporting entirely; (iii) even when there is some selective reporting in equilibrium and more stringent monitoring is costless, increasing the probability of detection might not be beneficial; and (iv) when society values selectively reported information, the optimal fine might not be the largest possible fine.
- Sprache
-
Englisch
- Erschienen in
-
Series: CeDEx Discussion Paper Series ; No. 2016-04
- Klassifikation
-
Wirtschaft
Asymmetric and Private Information; Mechanism Design
Information and Product Quality; Standardization and Compatibility
- Thema
-
strategic information transmission
distrust effect
confidence effect
monitoring
penalty
fine
sanction
detection probability
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Dahm, Matthias
González, Paula
Porteiro, Nicolás
- Ereignis
-
Veröffentlichung
- (wer)
-
The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
- (wo)
-
Nottingham
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Dahm, Matthias
- González, Paula
- Porteiro, Nicolás
- The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
Entstanden
- 2016
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